Management Discussion and Analysis

The Indian economy continued its downward slide throughout FY 2012-13, recording a lower GDP growth of 5% compared to 6.5% for FY 2011-12. The downward trend was also pronounced on a quarterly basis, as it could be seen in the charts below.

Growth rate in GDP (% change over corresponding period of the previous year)
  FY 2011-12 FY 2012-13
Q1 7.5 5.4
Q2 6.5 5.2
Q3 6.0 4.7
Q4 5.1 4.8
  6.2 5.0
Source: Ministry of Statistics and Programme implementation

After achieving growth rates of 8.6% in FY 2009-10 and 9.3% in FY 2010-11, the inflationary pressures started mounting. The RBI started tightening the monetary policy, resulting in lower growth rate in the last two years. The moderation in growth is primarily attributable to weakness in industry. The growth in agriculture has also been weak in FY 2012-13, following lower than normal rainfall. All the three major segments, agriculture and allied, industry and services, have displayed softening trend, quarter over quarter during the last two years.

As the pace of growth started slowing, the Government revenues started shrinking, exposing the economy to a higher fiscal deficit. The current account deficit also widened. Beginning FY 2011-12, the corporate and infrastructure investment started slowing mainly due to investment bottlenecks and tight monetary policy. FY 2012-13 was marked by the challenge to the Government to contain the fiscal deficit, and the Government expenditure on infrastructure and other key sectors suffered.

While there were monetary policy changes and limited Repo Raterevisions downwards in an effort to stimulate growth, (100 bps drop from the rate of April 2012), the RBI policy hinted limited headroom for further reduction in the light of the inflationary pressures, which dampened the prospects.

As a result, as compared to prior years, the domestic auto industry has recorded insignificant growth on an overall basis. With the continued high interest rates and inflation, households wereforced to spend more on essentials and discretionary spend reduced, leading to deferring of purchase decisions. The consistent stagnation of the industrial growth mainly in the areas of mining and quarrying, manufacturing and infrastructure, adverselyimpacted the domestic auto industry. In March (2013), a month which traditionally sees large volumes, car sales declined by 22.5%, despite heavy discounts being offered.

On the global economy front, both US and Europe were struggling with a stall in fundamental sectoral growth. The European economy continued to move sluggishly mainly due to the sovereign debtcrisis. The pace of economic expansion in emerging countries has slowed down. On the other hand, there was an eruption of political crises in the Middle East and Africa, which continues even till today.Unrelated political unrest also emerged in North Korea. The net impact of all these global events was that growth took a backseat as controlling unemployment, monitoring government expenditures and maintaining political stability, became priorities for regional governments. The world economy grew by 3.2% in 2012.

In terms of outlook for the year 2013, the advanced economies are likely to grow by 1.2% as compared to 1.1% in the year 2012. Slowdown is expected for developing and emerging economies, with growth falling in China from 7.8% to 7.5% in 2012.

The automobile industry has shown progress in a steady manner, especially in the US and emerging countries such as Asia. Thedemand for products with advanced green technology has remained strong throughout all the markets worldwide. However,the automotive industry continues to face a very competitive pricing environment, driven in part by industry excess capacity, particularly in mature markets such as North America and Europe.The Chinese economy has continued to grow strongly throughout 2012. GDP growth is likely to slow in future, although remain above 7.5%.

Tata Motors Business:

Consequent to the macro economic factors as explained above, the Indian automobile industry posted growth of 1.1% in FY 2012-13, as compared to 7.2% in the last fiscal. The commercial vehicles, grew by 1.7% (last year 19.2%) and passenger vehicles by 0.9% (last year 3.6%).

The industry performance in the domestic market during FY 2012-13 and the Company's market share are given below:-

Category Industry Sales   Company Sales   Market Share
  FY 2012-13 FY 2011-12 Growth FY 2012-13 FY 2011-12 Growth FY 2012-13 FY 2011-12
Commercial Vehicles 901,120 886,362 1.7% 536,232 530,204 1.1% 59.5% 59.8%
Passenger Vehicles 2,578,538 2,556,035 0.9% 229,325 333,044 -31.1% 8.9% 13.0%
Total 3,479,658 3,442,397 1.1% 765,557 863,248 -11.3% 22.0% 25.1%
Commercial Vehicles:

Within the overall Commercial Vehicles (CV) growth of modest 1.7%, the Medium and Heavy Commercial Vehicles (M&HCV) segment recorded a negative growth of 23.3%, as compared to a growth of 6.5% in last fiscal. The ban on mining in Karnataka and Goa, coupled with the slowdown in infrastructure spending, curtailed the growth significantly. In general, slowing industrial growth across many key segments adversely impacted the demand. The Light Commercial Vehicles (LCV) segment, however, grew by 17.9%.

The Company registered a marginal growth of 1.1% to 536,232 units, reflecting falling demand in M&HCV, and growth in volumes in LCVs.

The domestic industry performance during FY 2012-13 and the Company's market share are given below:-

Category Industry Sales   Company Sales   Market Share
  FY 2012-13 FY 2011-12 Growth FY 2012-13 FY 2011-12 Growth FY 2012-13 FY 2011-12
M&HCV 268,055 349,288 -23.3% 142,764 207,086 -31.1% 53.3% 59.3%
LCVs 633,065 537,074 17.9% 393,468 323,118 21.8% 62.2% 60.2%
Total 901,120 886,362 1.7% 536,232 530,204 1.1% 59.5% 59.8%

The Company's commercial vehicle sales in the domestic and international markets at 580,341 units, were 0.8% lower than the previous year.

The thrust this year was increasing penetration in LCV segments while retaining market share in the heavy segment, as competition actions increased in a shrinking market.

This was possible through targeted/structured financing activities coupled with key product actions to address niches in the market. Another key area has been to focus on solution offerings over andabove the product, such as Annual Maintenance contracts, 24x7 service support, Tata Alert assistance and telematics solutions. These initiatives were aimed at enhancing life cycle value to the customers.

During the year, the Company introduced a Telematics and Fleet Management Service, branded 'Tata FleetMan'. Targeted at commercial vehicle fleet owners and large consignors of goods,the service offers advanced telematics solutions, which will result in improved fleet utilization and logistics, and reduce track downtimes. The Tata FleetMan Telematics and Fleet management servicehas been designed to address pressing needs of the transport industry.

Through advanced telematics solutions like fuel management, driver management, remote diagnostics, real time fleet tracking, SMS Alerts, Geo-fencing and trip management, Tata FleetMan combines state-of-the-art IT and Telecom equipment and software, and offers one of the most advanced telematics solutions in the country.

The Company continued to make progress in the high growth pick up market. New product offerings addressing gaps in the portfoliocombined with finance schemes, facilitated increased penetration in the pick up segment.

While the Company has further consolidated its position and enhanced the market share in LCVs, it has lost market share in the M&HCV segment due to competitive pricing pressures. With the launch of high performance products and variants in this segment, and valueadd services to the customers, demonstrating the quality and reliability of its products and services and focussed marketing efforts, the Company is confident of maintaining and enhancing its premium brand positions and grow the market share.

Passenger Vehicles:

During FY 2012-13, the domestic passenger vehicle industry continued its downward momentum, recording a lower growth of less than 1% as compared to 3.6% for the last year. The demand was mainly affected by high interest rates, hike in fuel prices and reduction in discretionary spends.

One of the notable features during the year has been shift in demand for Utility Vehicles (UV), which recorded 21.8% contribution of the total industry, representing an all-time high in India, and registered a healthy growth of 51.5%, with every other segment registering a significant decline. The demand was also driven by a host of new launches in this segment, creating a customer class for car-like, soft roader UV's and emphasizing traditional rugged SUV offerings.

The domestic industry performance and the Company's performance in the passenger vehicle segment are given below:-

Category Industry Sales Company Sales Market Share
  FY 2012-13 FY 2011-12 Growth FY 2012-13 FY 2011-12 Growth FY 2012-13 FY 2011-12
Micro 53,847 74,521 -27.7% 53,847 74,521 -27.7% 100.0% 100.0%
Compact 794,627 856,381 -7.2% 117,377 176,104 -33.3% 14.8% 20.6%
Mid-size 200,007 204,733 -2.3% 7,410 19,645 -62.3% 3.7% 9.6%
Executive 23,256 37,275 -37.6% 1,061 4,796 -77.9% 4.6% 12.9%
Premium and Luxury 5,183 7,414 -30.1% 825 985 -16.2% 15.9% 13.3%
Utility Vehicles 560,992 370,286 51.5% 45,841 49,035 -6.5% 8.2% 13.2%
Vans (Note a) 123,152 152,019 -19.0% 2,964 7,958 -62.8% 2.4% 5.2%
Total (Note b) 2,578,538 2,556,035 0.9% 229,325 333,044 -31.1% 8.9% 13.0%

The negative growth in the industry in segments the Company operates in, and lack of an appropriate soft roader offering in the growth segment, contributed significantly to the less than market performance of the Company.

During the year, the Company recorded sales of 229,325 vehicles (including Jaguar Land Rover) in the domestic market; a declineof 31.1% over last year. The overall market share was lower at 8.9% as compared to 13.0% during the last fiscal year.

The Company introduced a host of new products in the year. The new Safari Storme, the Manza Club class and the Vista D90, drovevolumes in their respective segments. The new launches focused on enhancing the Brand positioning, while making it relevant for the younger buyer.

The Company also worked on improving the décor and ambience of its showrooms to make them world class. This effort has beencompleted at pilot dealerships and workshops in Mumbai and Delhi, with encouraging results, and the initiative will now be carried forward to other setups across the country.

Nano registered volumes of 53,847 units for the year. With a focus on moving brand Nano to make it further appealing to theyouth, a series of activities such as 'Art in Motion', 'Campus Brand Ambassador' etc., were launched with encouraging results. The Company continues its drive to identify newer markets for the Nano.Currently it is sold in Nepal and Sri Lanka and is also evaluating other markets in South Asia.

The Company's sales in the mid-size segment suffered as competitive activity intensified with multiple new launches from competition in this segment.

Although, the UV market recorded a healthy growth of 51.5% during the year with industry sales of 560,992 units, the Company has registered decline of 6.5% in this segment. The decline is mainlyattributable to absence of a product in the fast growing soft roader UV segment. The Safari Storme was launched in October 2012, atan aggressive price and has received a positive response from the market with 6,050 units sold in FY 2012-13. This segment with its tremendous growth potential, will continue to be a focus area.

The Company sold 2,494 Jaguar and Land Rover vehicles through its exclusive dealerships in India, registering an impressive growth of 9.7%. The Company launched the globally popular Range Rover Sport and Jaguar XF 3.0 litre D during the year. The activityof assembling JLR vehicles at Pune continues to grow and is part of the Company's plan for sharing knowledge and best practices between Tata Motors and JLR. The Jaguar XF was the latest model to be rolled out from the Pune assembly plant and will be followed soon by other variants as well.

Tata Motors Sales, Distribution and Support: The sales and distribution network in India as of March 31, 2013, comprises 2,609 sales contact points for the Passenger and Commercial Vehicle businesses. The Company has deployed a Customer Relations Management (CRM) system at all our dealerships and offices across the country. The system is certified by Oracle as the largest Siebel deployment in the automotive market. The combined online CRM system supports users both within the Company and among the distributors in India and abroad.

The Company's 100% subsidiary, TML Distribution Company Ltd (TDCL), acts as a dedicated distribution and logistics management company to support the sales and distribution operations of vehicles in India. TDCL provides distribution and logistics support for vehicles manufactured at the Company's facilities. TDCL helps us improve planning, inventory management, transport management and timely delivery.

The Company provides financing support through its whollyowned subsidiary, Tata Motors Finance Ltd (TMFL). (Refer discussionon TMFL).

In addition to dealer service workshops, the Company uses a network of service centers on highways and a toll-free customer assistance center to provide 24-hour on-road maintenance (including replacement of parts) to vehicle owners. The Companybelieves that the reach of the sales, service and maintenance network, provides us with a significant advantage over the competitors.

Tata Motors Competition: The Company faces competition from various domestic and foreign automotive manufacturers in theIndian automotive market. Improving infrastructure and robust growth prospects compared to other mature markets, given the comparative low penetration of vehicles per thousand population, are now attracting a number of automotive OEM's to India. These companies have either formed joint-ventures with local partnersor have established independently-owned operations in India. The global competitors bring international experience, global scale, advanced technology and significant financial support, forthe operations in India. The competition continues to intensify every year.

The Company has designed its products to suit the requirements of the Indian market based on specific customer needs such assafety, driving comfort, fuel efficiency and durability. The Company believes that its vehicles are suited to the general conditions of Indian roads, driving habits and the local climate. The Company also offers a wide range of optional configurations to meet the specific needs of its customers. The Company is developing products to strengthen its product portfolio in order to meet customer expectations.

Tata Motors Exports: The Company continues to focus on its export operations. The Company markets its commercial and passenger vehicles in several countries in Europe, Africa, the MiddleEast, South East Asia and South Asia. However, the Company's export of vehicles manufactured in India decreased by 19.3% in FY 2012-13 to 50,938 units from 63,105 units in FY 2011-12. Commercial vehicles exports sales declined by19.9% to 44,109 units, impactedby the economic and general environment in Europe, the Middle East, and South Asia. The Passenger vehicle sales declined by 19.2% to 6,829 units.

For FY 2012-13, the Company's top five export destinations accounted for approximately 51% and 92% of the exports ofcommercial vehicles and passenger vehicle units, respectively. The Company continues to strengthen its position in the geographicareas it is currently operating in and exploring possibilities of entering new markets with similar market characteristics to the Indian market.

The Company has set up a network of distributors in almost all countries where the vehicles are exported. The distributionnetwork includes local dealers for sales and servicing products in the respective regions. The Company has also deputed itsrepresentatives overseas to support sales and services and to identify opportunities.

Jaguar Land Rover business: On June 2, 2008, the Company acquired the global business of Jaguar Land Rover (JLR) whichincluded the premium Brands, three major production facilities and two advanced design and engineering centers in United Kingdom, a worldwide sales and dealership network, intellectual property rights, patents and trademarks. Since then, JLR has significantly consolidated its position in the premium car segment.

The strengths of JLR include iconic globally positioned brands, strong product portfolio of award-winning luxury and high performance cars and premium all-terrain vehicles, global distribution network, strong product development and engineering capabilities, and astrong management team. The brand-wise wholesale of JLR are set forth in the table below:-

  FY 2012-13 FY 2011- 12 Growth
  Units % Units %  
Jaguar 57,812 15.5% 54,039 17.2% 7.0%
Land Rover 314,250 84.5% 260,394 82.8% 20.7%
Total 372,062 100.0% 314,433 100.0% 18.3%

During FY 2012-13, total wholesale unit sales increased to 372,062 units from 314,443 units in FY 2011-12; an increase of 18.3%. Jaguar volumes increased to 57,812 units during FY 2012-13 from 54,039 units in FY 2011-12; an increase of 7.0%. Land Rover volumes increased to 314,250 units from 260,394 units in FY 2011-12; an increase of 20.7%, mainly contributed by Range Rover Evoque and Freelander sales. JLR exported 304,034 units in FY 2012-13compared to 262,637 units in FY 2011-12; an increase of 15.8% (Refer discussion below).

JLR had a successful year of continued growth in all markets, including 48% year on year growth in China retail sales. JLR significantly improved performance in mature economies. Despite uncertain trading conditions, it has increased sales in all majormarkets. The growth has been driven by a full year of Range RoverEvoque sales, new Jaguar product lines and increasing sales of its existing models.

Jaguar designs, develops and manufactures premium luxury saloons and sports cars, recognised for their performance, design and unique British style. Jaguar's range of products comprises theXK sports car (coupe and convertible), the XF saloon and the new XJ saloon.

The Jaguar 2012 Model Year line-up included a new four cylinder 2.2-litre diesel version of the XF with Intelligent Stop-Start Technology, making it the most fuel-efficient Jaguar and enabling penetration in the UK and European fleet and company car, markets. At the Geneva Motor Show in March 2012, JLR unveiled the XF Sportbrake, an estate derivative of the car. The 2013 Model year XF range also includes for the first time an all-wheel drive version of the new V6 petrol engine for the U.S. and European markets, and a2.0-litre petrol version for the U.S. and Chinese markets. JLR started selling the 2013 Model year XF and Sportbrake at the end of the third quarter of FY 2012-13.

The XJ is Jaguar's largest luxury saloon vehicle, powered by a range of supercharged and naturally aspirated 5.0-litre V8 petrolengine and a 3.0-litre diesel engine. Using Jaguar's aerospace inspired aluminium body architecture, the new XJ's lightweight aluminium body provides improved agility, and fuel and CO2 efficiency. The XJ has received more than 20 international awards since its launch, including ''Best Luxury Car'' from China's Auto News, ''Annual Limousine King'' from Quattroroute (Italy), ''Luxury Car ofthe Year'' from Top Gear (UK), Automobile Magazine's ''2011 Design of the Year'' and ''Best Executive Sedan'' at the Bloomberg Awardsin the United States. In 2011, the XJ was upgraded to include a new Executive Package and a Rear Seat Comfort Package, for theultimate executive limousine experience. The 2013 Model Year also includes an all-wheel drive version and a 3.0-litre V6 petrol version for the U.S. and European markets and a 2.0-litre petrol version forthe Chinese market, which benefits from lower custom duties in that market. JLR started selling the 2013 Model Year XJ in the second quarter of FY 2012-13.

In September 2012, Jaguar unveiled the F-TYPE at the Paris Motor show, a two-seat sports car that was inspired by the 2011 C-X16 concept cars. Like the XK and XJ, the F-TYPE has an all-aluminium structure and combines enhanced technology with the power of Jaguar's latest 3.0-litre V6 and 5.0-litre V8 engines. The F-TYPE is available to retail customers from April 2013.

Land Rover designs, develops and manufactures premium all-terrain vehicles that aim to set high benchmarks of agility, maneuvering, durability and style. Land Rover's range of products comprises Defender, Freelander 2 (LR2), Discovery 4 (LR4), Range Rover Evoque, Range Rover Sport and Range Rover.

Land Rover products offer a range of powertrains, including turbocharged V6 diesel, V6 petrol engines and V8 naturally aspirated and supercharged petrol engines, with manual and automatic transmissions.

The Defender is one of Land Rover's most capable SUVs, and is recognised as an iconic vehicle in the segment targeting extreme all-terrain capabilities and payload/towing capability.

The Freelander 2 is a versatile vehicle for active lifestyles, matching style with sophisticated technology and off-road capability. The Freelander 2, offering was significantly enhanced for the 2013 Model Year with the introduction of a turbocharged 2.0-litre petrol engine, giving superior performance as compared to the 3.2-litre engine it replaces, while also reducing CO2 emissions.

The Discovery 4 is a mid-size SUV that features genuine all-terrain capability and versatility, including full seven-seat capacity. Recent power train innovations for the 2012 Model Year have delivered an improvement in CO2 for the 3.0-litre LR-TDV6 engine. The Discovery has won more than 200 awards since its introduction in 1989.

The Range Rover Evoque is the smallest, lightest and most fuelefficient Range Rover to date. The Evoque is available in 5-door and coupe body styles and in both front-wheel drive and all-wheel drive derivatives. Since its launch in September 2011, consumer interest and demand have been consistent across the globe. In its first full year of sales, JLR sold 103,269 total retail units of the Range Rover Evoque. The Evoque has also won over 120 international awards since its launch, reflecting its blend of design and capability.

The Range Rover Sport combines the performance of a sports tourer with the versatility of a Land Rover. The 2012 Model Year Range Rover Sport introduced a new version of the TDV6 diesel engine with an eight-speed transmission to reduce CO2 emissions. At the 2013 New York International Auto Show, Land Rover debuted the All New 2014 MY Range Rover Sport built on a weight saving aluminium architecture. The Sport's all-new, aluminium architecture achieves a weight saving of up to 420kg (on a comparable basis) for agility and exceptional performance, with 15% CO2 reduction and 24% improved fuel economy. The All New Range Rover Sport is the fastest, most agile and most responsive Land Rover ever.

The Range Rover is the flagship product under the Land Rover brand with a unique blend of British luxury, classic design, highquality interiors and outstanding all-terrain ability. The new allaluminium version was launched in the third quarter of FY 2012-13, the world's first SUV with a lightweight all-aluminium body, the new Range Rover has enhanced performance and handling on all terrains, and significant advances in environmental sustainability. The all-aluminium body shell has helped reduce the weight of the car substantially. A diesel hybrid Range Rover is currently being developed for introduction later in 2013. The new Range Rover was declared the world's top SUV by The Sunday Times, won Top Gear magazine's ''Luxury Car of the Year'' and was recently awarded the maximum 5-star safety rating by Euro NCAP.

Jaguar Land Rover's performance in key geographical markets on retail basis

United States: The US economy has recovered more favourably than other mature economies since the economic downturn. United States premium car segment volumes increased by 11% compared to FY 2011-12, whilst premium SUV segment volumes were up 3%. United States retail volumes for FY 2012-13 for the combined brands were 62,959 units. Jaguar retail volumes for FY 2012-13 fell by 6% compared to FY 2011-12, leading to a decrease in market share. Land Rover retail volumes for FY 2012-13 increased by 13% compared to FY 2011-12, and market share increased slightly.

United Kingdom: In FY 2012-13, the UK economy has been broadly flat. In the UK, the premium car segment fell by 2% compared to FY 2011-12, whilst SUV segment decreased by 16% in FY 2012-13 compared to FY 2011-12. UK retail volumes for FY 2012-13 for the combined brands were 72,270 units. Jaguar retail volumes for FY 2012-13 increased by 10% compared to FY 2011-12, increasing market share. Land Rover retail volumes for FY 2012-13, increased by 24% compared to FY 2011-12, increasing market share.

Europe (excluding Russia): The European economy continues to struggle, with austerity measures in place in a number of countries. The economic situation continues to create uncertainty around European zone stability, the Euro and financial market liquidity. With financing support for customers continuing to be difficult, the outlook remains volatile. The German premium car segment volume increased by 5% and the premium SUV segment volume fell by 9% compared to FY 2011-12. European retail volumes for FY 2012-13 for the combined Jaguar Land Rover brands were 80,994 units, representing a 18% increase compared to FY 2011-12. Jaguar retail volume for FY 2012-13 grew by 5%, and Land Rover retail volume for FY 2012-13 increased by 21% compared to FY 2011-12.

China: The Chinese economy continued to grow strongly throughout FY 2012-13. GDP growth is likely to slowdown in future, although expected to remain above 7.5%.

The China premium car segment volumes (for imports) increased by 12% in FY 2012-13, compared to FY 2011-12, whereas SUV segment volumes (for imports) increased by 8% in FY 2012-13 as compared to FY 2011-12. The China retail volumes for FY 2012-13 for the combined brands were 77,075 units. Jaguar retail volume for FY 2012-13, increased by 28% compared to FY 2011-12 and Land Rover retail volume for FY 2012-13, increased by 51% compared to FY 2011-12; both brands improving market share.

The Joint Venture to manufacture cars in China with Chery Automobile Co., Ltd (Chery), a Chinese auto manufacturer, is approved and GBP70 million was invested in FY 2012-13. JLR and Chery will now accelerate plans to build a joint venture manufacturing plant in Changshu, near Shanghai, as part of a 10.9 billion RMB (equivalent Rs. 9,540 crores) investment, which will also include a new research and development centre and engine production facility. The project envisages manufacturing of certain JLR vehicles, and also includes the creation of a new JV brand, specifically for the Chinese market, including the marketing and distribution. The two companies plan to complete the Changshu facility in Jiangsu province during FY 2013-14.

Asia Pacific: The Asia Pacific region main markets are Japan, Australia and New Zealand. These regions were less affected by the economic crisis when compared to western economies and are recovering faster, due to increased trade with China and other growth economies. The Asia Pacific retail volumes for FY 2012-13 for the combined brands were 17,849 units. Jaguar retail volume for FY 2012-13 increased by 27% compared to FY 2011-12. Land Rover retail volume for FY 2012-13 increased by 34% compared to FY 2011-12.

Other markets: The major constituents in other markets are Russia, South Africa and Brazil, alongside the rest of Africa and South America. These economies were not as badly affected by the economic crisis as the western economies and have continued growth in the last few years, partially on the back of increased commodity and oil prices. The retail volumes for FY 2012-13 for the combined brands were 63,489 units, up by 19%. Jaguar retail volume for FY 2012-13 was 6,402, up 17%, whilst Land Rover retail volume was 57,087, an increase of 19%.

Jaguar Land Rover's Sales & Distribution: JLR markets products in 178 countries, through a global network of 17 national sales companies (''NSCs''), 85 importers, 62 export partners and 2,485 franchise sales dealers, of which 689 are dealers for both Jaguar and Land Rover. JLR has established robust business processes and systems to ensure that its production plans meet anticipated retail sales demand and to enable the active management of its inventory of finished vehicles and dealer inventory throughout its network. JLR has entered into arrangements with independent partners to provide financing to its customers, including FGA Capital, a joint venture between Fiat Auto and Credit Agricole, Chase Auto Finance for its key markets, and local finance providers in a number of other markets. JLR's financing partners offer its customers a full range of consumer financing options.

Jaguar Land Rover's Competition: JLR operates in a globally competitive environment and faces competition from established premium and other vehicle manufacturers, who aspire to move into the premium performance car and premium SUV markets. Jaguar vehicles compete primarily with other European brands such as Audi, BMW and Mercedes Benz. Land Rover and Range Rover vehicles compete mainly with SUVs manufactured by Audi, BMW, Infiniti, Lexus, Mercedes Benz, Porsche and Volkswagen. The Land Rover Defender competes with vehicles manufactured by Isuzu, Nissan and Toyota.

Tata Daewoo Commercial Vehicles (TDCV): FY 2012-13 was a very challenging but at the same time encouraging year for TDCV. On one hand, domestic volumes decreased by 17.6% as a result of slowdown in the Korean economy, on the other hand Export volumes (including Knocked Down (KD)) grew by 57.8%, with higher demand from oil driven economies like Algeria, Russia, etc. TDCV's total sales volume increased by 6% in FY 2012-13, compared to FY 2011-12.

TDCV sold 2,383 units of Heavy Commercial Vehicles (HCV) in FY 2012-13, as compared to 2,549 units in the previous financial year. The Company's volume for Medium Duty Trucks was 3,017 units in FY 2012-13, as compared to 4,003 units in FY 2011-12. The sales declined mainly due to slowdown in the Korean economy. TDCV exported 4,700 units in FY 2012-13, which is highest ever in its history and registered a growth of 57.8%, as compared to 2,979 units sold in the previous year. Its sales increased significantly in some of its traditional export markets like Algeria, Russia, Laos, South Africa, Vietnam, etc., coupled with entry into some new markets like Indonesia, Ecuador, Ghana, etc., with a view to diversify its market.

Tata Motors Finance Ltd (TMFL): Despite strained market conditions due to contraction of vehicle volumes, TMFL was able to grow its new vehicles disbursements by 6% from Rs.10,505 crores to Rs.11,180 crores. TMFL financed a total of 2,51,936 new vehicles reflecting a growth of 9% over the 2,30,588 vehicles financed in the previous year. Disbursals for commercial vehicles were at Rs.8,816 crores (1,81,374 units) as compared to Rs.7,204 crores (1,20,032 units) of the previous year. Disbursements of passenger vehicles declined by 28% to Rs.2,364 crores (70,562 units) from a level of Rs.3,301 crores (1,10,556 units).

During FY 2012-13, approximately 33% of Tata vehicle unit sales in India were made by the dealers through financing arrangements provided by TMFL. The total vehicle finance receivables (consolidated) outstanding as at March 31, 2013 and 2012, amounted to Rs.18,226.78 crores and Rs.15,747.67 crores, respectively

In the current environment of sluggish growth and consequent lower demand of medium/ heavy trucks and passenger vehicles, TMFL has been able to show overall stability in its operations and has increased its disbursements as well as market share by over 6%. A highly motivated employee workforce, significantly greater customer orientation, increased branch network and field infrastructure, ensures that TMFL is poised for significant and sustainable growth.

TMFL's new initiative of Channel Finance to dealers and fee based Insurance support business, will significantly help improve the Company's profitability in the coming period. It has also stepped up significantly its "Office of the Customer initiative" as well as its branch network and infrastructure.

Tata Technologies Ltd (TTL): TTL is a key strategic partner in several of the information technology initiatives for the Tata Motors Group. The broad scope of TTL activities are as follows:

  1. Engineering Automation Group [EAG]: EAG addresses the engineering and design needs of manufacturers through services for all stages of the product development and manufacturing process.
  2. Enterprise Solutions Group [ESG]: ESG addresses the Information Technology needs of manufacturers including business solutions, strategic consulting, ERP implementation, systems integration, IT networking and infrastructure solutions and program management.
  3. Product Lifecycle Management [PLM]: PLM addresses the product development technology solution requirements of manufacturers including end-to-end implementation of PLM technology, best practices and PLM consulting. PLM also includes the TTL's proprietary applications iGETIT® and iCHECKIT®.

The consolidated revenue for FY 2012-13 of TTL was Rs.2,045.42 crores, an increase of 22.8% as compared to Rs.1,665.95 crores in the previous year. The Services/Products business mix was a 76:24 split as compared to 73:27 mix for FY 2011-12. The Americas revenue was Rs.608.95 crores with Asia Pacific recording Rs.867.00 crores and Europe generating Rs.820.45 crores.

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